Wednesday, March 18, 2009

S. Korean Investment in Cambodia down by 25 pct in 2008

The South Korean investment in Cambodia fell by 25 percent in 2008 over 2007, as the investors' pockets became contracted over the global financial crisis, national media said on Wednesday.

The amount of investment in 2009 was expected to further go down by 58 percent over 2008, Chinese-language daily newspaper the Commercial News quoted South Korean Embassy official Lee Sang Kwang as saying.

In 2008, the registered South Korean investment in Cambodia stood at 1.25 billion U.S. dollars, but only 473 million U.S. dollars was actually poured into the kingdom for a variety of projects, he said.

In 2007, the investors channeled 629 million U.S. dollars into Cambodia for their projects, he added.

"We have found that many South Korean investing companies faced their hard times, so most of them suspended their projects here," he said.

They could not manipulate their capital in South Korea as easily as before, and then became unable to invest more in overseas countries, including Cambodia, he added.

South Korea used to the third largest investing country in Cambodia, right after China and Japan, according to official figures.

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